Oil Slips, Saudi Signals Lots More Crude

SO MUCH FOR ANYONE THAT THINKS **Y2k** had ANYTHING TO DO WITH THE RISE IN THE PRICE OF OIL.

OPEC HAS THE OIL AND NOW WILL SHIP IT.

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Oil Slips, Saudi Signals Lots More Crude
March 15, 2000 9:06 am EST

LONDON (Reuters) - Nervous oil prices retreated on Wednesday on strengthening signals that major producers will free up supplies to sate thirsty refiners at the beginning of the second quarter.

North Sea benchmark Brent Blend crude for April delivery had fallen 62 cents to $27.72 per barrel by 1325 GMT while U.S. marker NYMEX April crude futures traded 43 cents off at $31.26.

Constructive overnight data showing draws across the board at U.S. crude and products' stockpiles were overshadowed by continued preoccupation over the future output policy of the Organization of the Petroleum Exporting Countries (OPEC).

Day-earlier comments from OPEC heavyweight Saudi Arabia pressured prices as the market continued to build in expectations of bigger oil flows from April.

A Saudi source said Tuesday that the kingdom would support an output hike from April 1 to meet expected refiner demand for "lots" more oil.

"The trend right now is for OPEC and non-OPEC producers to increase production from the beginning of the second quarter by an amount reflecting expected demand," the Saudi source said.

The source said the market "needs more oil and lots of it." The exact amount of the increase would be decided when OPEC members meet on March 27 in Vienna.

VENEZUELA PREPARES FOR NEW OUTPUT TALKS

OPEC's Venezuela said Wednesday its Oil Minister Ali Rodriguez would visit his Iranian counterpart Bijan Namdar Zanganeh in Tehran this Saturday in an effort to reach common ground on additional OPEC oil supplies.

Venezuela and Saudi Arabia are believed to hold a common position on how much oil OPEC should pump when current output curbs expire at the end of March.

OPEC price hawk Iran is holding out for about a 700,000 barrels-per-day rise while the Saudis and Venezuelans are believed to want nearer 1.5 million bpd.

The Saudis and Iranians are agreed that any extra output will come on top of current leakage above official quotas -- estimated at between 1.2 million and 1.4 million barrels daily.

Rodriguez will travel to Kuwait and Iraq after his stop in Tehran.
Analysts have said OPEC needs to raise output by more than two million bpd to restore world stocks to normal levels.

Fresh figures from the American Petroleum Institute (API) on Tuesday showed that U.S. crude and products' inventories continue to dwindle.

The API figures showed a 2.05 million barrel fall in U.S. gasoline stocks in the week to March 10. Distillate inventories were down 2.37 million barrels and crude stocks off by 3.56 million barrels.

#3 Figure out why natural gas production is down 1.5 BILLION cubic
feet PER DAY so far this year! The daily consumption of California is
1.3 BILLION cubic feet per day.
(news story from 2/22/00
http://quote.bloomberg.com/news2.cgi?T=energy_refout.ht&s=77582105)

#4 Figure out why Nigeria and Zimbabwe (Nigeria is an oil exporting
country) are and have been RATIONING GASOLINE!
(news story from 2/4/00
http://www.nigerianews.net/cgi-local/getNewsArticle.cgi?id=7403)

But don't let ME rain on your parade.

Ooops, there goes another refinery
http://unam.netgate.net/novedades/nna71403.htm

Residents in a northern Mexico City neighborhood on Monday blocked two
main avenues to demand city officials permanently close a gas plant
where a Sunday
explosion nearly sent their community up in flames.

The Energy Secretariat said the privately owned plant will remain
closed until federal investigators determine the cause of the
explosion in the San Lorenzo
Tlaltenango colonia. The Mexico City Attorney General's Office also
launched an investigation into the incident.

On Sunday morning, more than 150 firefighters battled 90-foot flames
at the distribution plant. After three hours, firefighters contained
the blaze that left one fireman
injured. Seven gas lines at a distribution plant caught fire and
sparked a series of explosions. Firefighters said each gas pipeline
had a 2,600-gallon capacity.

Regio Gas issued a statement saying the blast was not caused by a pipe
explosion but by a high-pressure release from emergency blowout
valves.

Residents took to the streets after observing gas distribution trucks
entering the plant despite its apparent closure.

Protesters said the explosion brought back haunting memories from the
past when another privately-owned gas plant erupted, leaving more than
500 people dead in
San Juan Ixhuatepec, the State of Mexico. Thousands more were injured
in the November, 1984 explosion. Investigations said a gas leak
sparked the 1984 fire that
swept the facilities and spread to surrounding homes, causing many
household propane tanks to burst.

Had it not been for the fire department's swift response last Sunday,
many neighbors feared they could have seen a repeat of the 1984
tragedy.

Neighbors interviewed by TV Azteca demanded Regio Gas close or move
its facilities to a less populated area.

"It's very risky for all of us who have to live here," said one
resident who wished to remain anonymous. "It's time they relocate.
They should operate in areas that
aren't so densely populated."

But Regio Gas said the plant was built 40 years ago when the area was
primarily an industrial zone. The private company said they have tried
to negotiate with
neighbors but their offers to purchase their land have been met by
homeowners' unreasonable selling prices. In many cases, Regio Gas said
it finds itself negotiating
with neighbors that are not legal homeowners.

It seems the first link I provided has been replaced with a newer
article about some other topic. Here is/was the original article....

Marathon continues cleanup of crude

By CATHY GILKEY
Sun Staff Report

While cleanup crews and environmental officials have stood
down from emergency
operations status, Marathon Ashland Petroleum workers and
contractors remain at the
Southwind Golf Course in their continuing efforts to remove
any remaining oil from the
ground and the Two Mile Creek.

About 30 people remain on-site, down from a peak of 500 a
week or so after the spill
was reported, said Troy Reynolds, spokesman for MAP.

The Marathon Ashland Petroleum oil transmission pipeline
ruptured Jan. 27, spilling
close to 900,000 gallons on the Southwind Golf Course and
into Two Mile Creek.
Workers were able to stop the oil before it reached the
Kentucky River.

But as a precautionary measure, Winchester continues
drawing water from its Carroll E.
Ecton Reservoir as the Winchester Municipal Utilities Co.
still is testing Two Mile Creek
and the Kentucky River for any traces of petroleum
derivatives.

On Feb. 3, WMU officials decided to switch to the
reservoir when benzene and toluene
were found in samples taken from Two Mile Creek below the
containment area.
Marathon Ashland Petroleum officials confirmed that their
testing found trace quantities of
hydrocarbons. Benzene and toluene, both harmful if ingested
over a long period of time,
are hydrocarbons.

"We'll continue to monitor the water," said WMU General
Manager Vernon Azevedo.
"When we have a comfortable level, we'll switch back."

Azevedo said a "comfortable level" would be undetectable
levels of the two compounds.

If the most recent water tests come back negative, WMU
will switch back to the
Kentucky River as its water source, he said.

Winchester is one of only five utilities in the state to
have two separate water supplies.

With the recent rain, Two Mile Creek should be more
flushed out and any leftover oil or
oil compounds could be diluted even more, he said.

Reynolds agreed that the rain helped flush the area and
said workers continue to skim
any oil off the surface. Two dams that allow water to flow
but stop oil have been
constructed at the containment site.

Two of the trailers used as a command post at the golf
course have been removed and
the rest will be leaving Friday, Reynolds said.

A new office will be opening Friday at 47 S. Main St.
Suite 205, to be used as a contact
point for the community and MAP. The office's phone number
will be 737-0454.

No price tag has been attached to the spill, Reynolds
said.

"Our primary concern is the complete restoration of the
area, regardless of the cost," he
said.

MAP officials have been meeting with community groups and
speaking with residents
about the spill and their efforts to restore the area. Gary
Wieland, deputy incident
commander for MAP now working at the site, recently spoke at
a Rotary Club luncheon
and other officials addressed the public at a forum Feb. 7.

MAP donated chainsaws and other small pieces of equipment
to last weekend's annual
auction of the Winchester and Clark County Kiwanis clubs to
raise funds for charity
projects. Reynolds said it was part of MAP's effort to work
with the community in the
aftermath of the spill.

>>>Got any evidence that the random collection of accidents you list
is any greater percentage than last year or an average of the last 20?

RANDOM? 20 Refineries went DOWN unexpectedly due to
explosions/fires/leaks in January alone! There were 69 fires and
explosions at refineries & pipelines in January as well! Thats
'random'??

In December Saudi Arabia announced they would bridge any oil gap
experienced due to any Y2K glitchs that may occur. Within the past
month they stated there was a 'glut'.

In January it was reported Austrailia grounded all small aircraft
because the Mobil Oil company refinery there had MAJOR problems in
it's refinery process. These planes and helocopters were grounded all
of January and most of February.

>>>But don't jump the 99.999% of the people who don't pay the
slightest attention to this anymore.

I think anyone paying for gas/diesel is taking notice. Especially
since gasoline is now over $2.00 a gallon and climbing.

I'm not here to argue over y2k related or not, truth is nobody knows
for sure. But, I have noticed the increase. As I'm sure we all have.
I went yesterday to my station, a Shell at the corner of the street
and ALL the regular unleaded had "out of order" signs on them!!! ALL
of THEM...forcing me to pay the mid grade price. Sure, I could have
went on down the street (with tank below e, cuz me and spouse have an
ongoing fill er up war going on, which is neither here nor there, but
it did prevent me from venturing elsewhere, no i am not blonde!@)but
i couldnt. My question, anyone else have this happen to them yet? or
is it just consumer's luck?